Correlation Between Citi Trends and SRM Entertainment,

Can any of the company-specific risk be diversified away by investing in both Citi Trends and SRM Entertainment, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citi Trends and SRM Entertainment, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citi Trends and SRM Entertainment, Common, you can compare the effects of market volatilities on Citi Trends and SRM Entertainment, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citi Trends with a short position of SRM Entertainment,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and SRM Entertainment,.

Diversification Opportunities for Citi Trends and SRM Entertainment,

0.39

Correlation Coefficient

Citi Trends  SRM Entertainment,

Weak diversification

The 3 months correlation between Citi and SRM is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and SRM Entertainment, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRM Entertainment, Common and Citi Trends is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citi Trends are associated (or correlated) with SRM Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRM Entertainment, Common has no effect on the direction of Citi Trends i.e., Citi Trends and SRM Entertainment, go up and down completely randomly.

Pair Corralation between Citi Trends and SRM Entertainment,

Given the investment horizon of 90 days Citi Trends is expected to generate 1.13 times less return on investment than SRM Entertainment,. But when comparing it to its historical volatility, Citi Trends is 4.26 times less risky than SRM Entertainment,. It trades about 0.4 of its potential returns per unit of risk. SRM Entertainment, Common is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  62.00  in SRM Entertainment, Common on September 15, 2024 and sell it today you would earn a total of  9.00  from holding SRM Entertainment, Common or generate 14.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citi Trends  vs.  SRM Entertainment, Common

Citi Trends

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citi Trends are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

SRM Entertainment, Common

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SRM Entertainment, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SRM Entertainment, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citi Trends and SRM Entertainment,

The main advantage of trading using opposite Citi Trends and SRM Entertainment, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, SRM Entertainment, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SRM Entertainment, will offset losses from the drop in SRM Entertainment,'s long position.

The idea behind Citi Trends and SRM Entertainment, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.